Ellendale diamond mine to reopen

Mining News Pro - The Western Australian government is calling for expressions of interest (EOI) from experienced mining companies interested in reopening the Ellendale diamond mine on a new mining lease

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According to Mining News Pro - Located 120km east of Derby in the West Kimberley region of Western
Australia, Ellendale was mined between 2002 and 2015 and is still
considered to contain marketable diamonds.

The mine has produced gem and industrial-quality diamonds, and
previously provided about half of the world`s highly valued fancy yellow
diamonds.

The mine includes the E4 and E9 pits, waste rock landforms, tailings storage facilities and areas of other infrastructure.

The mining tenements were held by Kimberley Diamond Company (KDC),
but mining activities ceased at Ellendale in July 2015, when KDC entered
into administration. Later that month, creditors voted for the company
to be placed into liquidation

After the mine was closed in 2015, the minister for mines and
petroleum created an exemption area under Section 19 of the Mining Act.
This section allows the minister to invite a mining company or
consortium to apply for a new mining lease.

The Department of Mines, Industry Regulation and Safety (DMIRS) has
been managing the site through the Abandoned Mines Program since then
and has undertaken a range of activities within the Ellendale area to
minimise the environmental, safety and health risks at the site.

"We are looking for a company that will bring fresh eyes and a new
approach to Ellendale," commented Mines and Petroleum Minister Bill
Johnston.

"I expect the successful company will have experience in diamond
mining and marketing, they`ll understand WA`s regulatory requirements
and be able to fund the new operation."

Submissions for EOIs close on November 30, 2018, and will be
evaluated by a panel of experts at DMIRS before being presented to
Johnston.

The minister will choose the successful candidate after considering
the EOIs. It is expected the successful company will be announced in
early 2019.